IRM Energy IPO Opens for Subscription with Competitive Pricing

IRM Energy IPO Opens for Subscription with Competitive Pricing
IRM Energy IPO Opens for Subscription with Competitive Pricing
IRM Energy IPO Opens for Subscription with Competitive Pricing
IRM Energy IPO Opens for Subscription with Competitive Pricing

IRM Energy IPO Opens for Subscription with Competitive Pricing

IRM Energy IPO Opens for Subscription with Competitive Pricing

IRM Energy IPO Opens for Subscription with Competitive Pricing

Investors have an exciting opportunity as the IRM Energy IPO opens for subscription from Wednesday, October 18, and continues until Friday, October 20. The allocation to anchor investors for the IRM Energy IPO is set for Tuesday, October 17. The price band for IRM Energy IPO has been meticulously determined, falling within the range of ₹480 to ₹505 per equity share, with a face value of ₹10.

The IRM Energy IPO has set a floor price that is 48.0 times the face value of the equity shares and a cap price that is 50.5 times the face value of the equity shares. The price-to-earnings ratio, based on diluted earnings per share (EPS) for fiscal 2023, is 22.93 times at the floor price and 24.13 times at the cap price. For investors considering participation, the IRM Energy IPO lot size comprises 29 equity shares and can be applied for in multiples of 29 equity shares thereafter.

Diverse Allocation and Growth Plans

IRM Energy has diversified its allocation strategy. The company has reserved not more than 50% of the shares in the public issue for Qualified Institutional Buyers (QIB), a minimum of 15% for Non-Institutional Investors (NII), and a minimum of 35% for Retail Investors. Additionally, eligible employees bidding in the employee reserve portion are being offered a discount of ₹48 per equity share.

The IRM Energy IPO is an entirely fresh issue, with no offer for sale (OFS) component, as per the Red Herring Prospectus (RHP). The proceeds from this offering are earmarked for several goals, including the prepayment or repayment of certain outstanding borrowings, general corporate purposes, and funding capital expenditure requirements for the development of the City Gas Distribution network in specific Geographical Areas.

Promising Market Position and Lead Managers

IRM Energy is a city gas distribution company operating in various regions, including Gujarat, Punjab, Union Territories, and Tamil Nadu. Its core business involves the establishment, operation, and expansion of city and local natural gas distribution networks. Comparable listed peers include Gujarat Gas Ltd and Indraprastha Gas Ltd.

The book running lead managers for the IRM Energy IPO are Hdfc Bank Ltd and Bob Capital Markets Ltd, with Link Intime India Private Ltd serving as the registrar.

Grey Market Premium Reflects Investor Enthusiasm

The grey market premium (GMP) for the IRM Energy IPO currently stands at +105, indicating that IRM Energy’s share price is trading at a premium of ₹105 in the grey market. This premium showcases investor eagerness to acquire shares at a value higher than the issue price, reflecting a positive market sentiment toward the IPO.

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